What’s Gotten Into These Stocks? Hansen Medical, Inc. (HNSN), Intuitive Surgical, Inc. (ISRG)

Page 1 of 2

What’s gotten into these stocks? Two stocks in the health-care sector have been on solid run-ups in recent weeks. Hansen Medical, Inc. (NASDAQ:HNSN) shares jumped more than 16% in the last month, while shares of Pacific Biosciences of California (NASDAQ:PACB) are up nearly 33% over the same period. What is behind these increases? Let’s take a look.

Intuitive Surgical, Inc. (NASDAQ:ISRG)Robots for sale
Hansen Medical makes surgical robotic systems, namely Sensei and Magellan. Sensei helps physicians collect electrophysiological data within the heart atria. Magellan is used by physicians in clearing clogged arteries in patients’ arms and legs. Unfortunately for Hansen, sales for the Sensei system, which has been commercially available for more than five years, have yet to really take off. Magellan has been available for a little over a year, so it’s still too early to tell how sales will fare for the newer system.

HNSN Revenue TTM Chart

HNSN Revenue TTM data by YCharts.

The chart shown above illustrates Hansen’s problems. Sales have been relatively flat for the last five years. Meanwhile, the company has continued to operate in the red the entire time with no sign of profitability on the horizon. And yet Hansen’s stock has been on a tear recently. What’s the catalyst?

There have been no big news stories or other obvious developments to explain the stock’s rise. The only truly notable activity in the past month is additional insider purchasing by Larry Feinberg, head of Oracle Investment Management. Oracle Investment Management currently owns nearly 11% of Hansen. However, Feinberg’s buying so far in 2013 hasn’t been huge (less than $250,000) and is a continuation of relatively steady purchases since October.

Unusually heavy volume occurred on Jan. 22, a day that saw Hansen shares jump around 14%. Obviously, more people than just Larry Feinberg are buying. The question is, “Why?” Unfortunately, in absence of concrete facts, we’re left only with speculation.

One possibility is that some think that a potential acquisition of Hansen is in the works. A possible buyer could be Intuitive Surgical, Inc. (NASDAQ:ISRG) . Intuitive already has paid $20 million to Hansen for licensing of technology and $10 million for nearly 5.3 million shares in stock. Another possible buyer is St. Jude Medical, Inc. (NYSE:STJ) . Hansen and St. Jude have a co-marketing agreement in place for integrating the Sensei system with St. Jude’s Ensite cardiac mapping system.

Both Intuitive and St. Jude have plenty of cash to pick up Hansen. Both have reasons to be interested. If any acquisition talks are under way, though, Intuitive Surgical looks to be the more likely buyer, since it already has skin in the game. At this point, however, we’re still only talking about “ifs” and “maybes.”

It’s in the DNA
Pacific Biosciences has had an even bigger run thus far in 2013. Shares were up close to 80% for the year before pulling back. What jump-started the climb for this small-cap DNA sequencing company? Two key factors appear to be at work.

First, the company announced good news in early January. The 100K Pathogen Genome Project selected PacBio’s SMRT technology to sequence the genomes for at least 1,000 foodborne pathogens. This announcement could represent the beginning of a turnaround for PacBio, which didn’t record any instrument sales last quarter. Analysts are expecting the company’s fourth-quarter results, which are released today, to improve somewhat.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!